Analyzing Ixia (XXIA) and Echostar (SATS)

Ixia (NASDAQ: XXIA) and Echostar (NASDAQ:SATS) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Insider & Institutional Ownership

63.6% of Ixia shares are owned by institutional investors. Comparatively, 44.5% of Echostar shares are owned by institutional investors. 24.4% of Ixia shares are owned by company insiders. Comparatively, 73.5% of Echostar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Ixia and Echostar, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ixia 0 3 1 0 2.25
Echostar 0 1 1 0 2.50

Ixia currently has a consensus price target of $19.65, indicating a potential upside of 0.00%. Echostar has a consensus price target of $70.00, indicating a potential upside of 13.91%. Given Echostar’s stronger consensus rating and higher possible upside, analysts clearly believe Echostar is more favorable than Ixia.

Profitability

This table compares Ixia and Echostar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ixia -29.28% -28.71% -19.71%
Echostar 5.55% 2.85% 1.26%

Valuation & Earnings

This table compares Ixia and Echostar’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ixia N/A N/A N/A ($0.41) -47.93
Echostar $3.06 billion 1.92 $179.93 million $1.24 49.56

Echostar has higher revenue and earnings than Ixia. Ixia is trading at a lower price-to-earnings ratio than Echostar, indicating that it is currently the more affordable of the two stocks.

Summary

Echostar beats Ixia on 9 of the 10 factors compared between the two stocks.

Ixia Company Profile

Ixia is a provider of physical and virtual network application performance and security resilience solutions. The Company’s product solutions consist of its hardware platforms, software applications and services, including warranty and maintenance offerings. The Company helps its customers to validate the performance and security resilience of their applications and networks. The Company offers network test hardware platforms with interchangeable interfaces, using a common set of applications and Application Programing Interfaces (APIs). The Company provides its solutions to network equipment manufacturers (NEMs), service providers, and enterprise and government organizations. The Company’s product solutions consist of its hardware platforms, such as chassis, interface cards and appliances, software application tools, and services, including its warranty and maintenance offerings and professional services.

Echostar Company Profile

EchoStar Corporation is a holding company. The Company is a provider of satellite operations, video delivery solutions, digital set-top boxes, and broadband satellite technologies and services for home and office, delivering network technologies, managed services, and solutions for enterprises and governments. The Company operates through three segments: Hughes, EchoStar Technologies (ETC) and EchoStar Satellite Services (ESS). The Company’s Hughes segment provides broadband satellite technologies and broadband services for the home and office, delivering network technologies, managed services and communication solutions to domestic and international consumers and enterprise and government customers. The ETC segment provides end-to-end video and broadcast technology products and services to businesses and directly to consumers. The ESS segment operates its business using its owned and leased in-orbit satellites. Its operations also include real estate and other activities.

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